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Assignment on Vicarious Liability

   

Added on  2020-04-21

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Running head: BUSINESS LAW1Vicarious liabilityName:Institution:Date:
Assignment on Vicarious Liability_1

BUSINESS LAW2IntroductionVicarious responsibility is a doctrine in which a liability is assigned for a tortuous act to a party or person who did not cause the tortuous act or injury but whose relationship with to a person who acted negligently is legal . Imputed negligence is the other name of vicarious liability. Examples of these relationships include; a child and his or her parent, employee and employer, owner of a vehicle and driver, husband and wife etc.The application of vicarious liability is done when it is just , fair and convenient to do so. It isa form of joint liability for both the party that committed the tort and the employer can be sued. It therefore arises when the tortfeasors relationship and the person who becomes vicarious liability become partners because of shared responsibility. For a vicarious liability to be satisfied , the person who commits the tort must be acting on behalf of an employer and must be committed during the course of employment .Vicarious liability allows victims to be compensated by placing liability on the party who is more likely to be insured , second, is where the resources of the tortfeasor does not allow himto meet the claim and its obvious that the employers are more suitable to meet the claim because they have more resources.The principle of loss distribution justifies vicarious liability in the modern world. in most cases, the employer who meets and pays damages for the tort committed by his employees does not do so out of his own pocket but rather the insurance company that covers him. Whenan employer insures against legal liabilities, there is additional cost that is charged to the goods and services to cover for the insurance which is known as passing the cost to the
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BUSINESS LAW3consumers. Therefore the insurance company should be the one that pays on behalf of the employer.The vicarious liability regime allows a plaintiff to be compensated by the party that is more likely to satisfy a judgment, this doctrine allows the employer who has deep pockets to meet the cost of the tort committed even if he is totally blameless. Second, the employer seeks to advance his own economic interest when he has hired the employee and therefore it is only fair for him to compensate the plaintiff if a tort is committed during the course of the enterprise. Third, vicarious liability doctrine is based on the deterrence principle. Given that itis the employer who will pay for any tort commited, he is responsible and has every incentiveto encourage the employees to do their job as expected and discipline the wrongdoers.The performance of any professional activity can lead to the development of a series of responsibilities and risks (Baty, 2010). Any professional, whether self-employed or entrepreneur, in the exercise of their work can cause damage to third parties with criminal consequences, when the action has been criminalized, or civil, when it is not a crime and the damage can be repaired. Therefore, for any worker to be protected against any of these adversities, it is advisable to take out a Professional Liability insurance.The vicarious liabilityinsurance has been created with the objective that the professional work quietly without worrying about the cost of the damages that may be caused in third parties. This insurance takes care of all the repairs and allows the worker to dedicate himself exclusively to the tasks of his business or company (Giliker, n.d.).Being involved in the tasks of a company, whether it is self-employed or SMEs, can lead to a series of responsibilities and obligations for which every employer must be directly and indirectly responsible. However, with the hiring of a vicarious liability insurance, the
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